Apple executive bonuses to link to social responsibility
Technology giant Apple has become the latest corporate to announce it will soon begin rewarding senior executives according to how well they meet environmental and social governance (ESG) goals. For the first time, executives will have their cash bonuses modified and linked to ESG targets. Bonuses paid out could be impacted by as much as plus/minus 10%.
While no specific details have been published about how exactly its ‘bonus modifier’ will work, according to Apple’s annual filing proxy, “beginning in 2021, an environmental, social, and governance modifier based on Apple Values and other key community initiatives will be incorporated into our annual cash incentive programme”.
Apple confirmed the compensation committee of its board of directors will use the new modifier to increase or decrease bonus payouts “based on the compensation committee’s evaluation of our named executive officers’ performance with respect to Apple values and other key community initiatives during 2021″.
Apple has six core values: accessibility, education, environment, inclusion and diversity, privacy and security, and supplier responsibility. News of the announcement sees it join the likes of Facebook, which has also recently said it will reward according to the social good it creates. Among the Russell 1,000 group of companies, around 20% now have executive pay linked to ESG goals.